1 week Ago By [email protected](KoreaTimes)
Fair Trade Commission (FTC) Chairman Han Ki-jeong speaks during a media briefing at the Government Complex Sejong, Wednesday. Yonhap Kakao subsidiary set to file administrative suit to defend innocence By Lee Min-hyung Kakao Mobility has been fined 72.4 billion won ($54.
93 million) for unfairly leveraging its dominant market position and forcibly collecting key business information from rival taxi-hailing service operators, the Fair Trade Commission (FTC) said Wednesday. The Kakao subsidiary demanded that its four competitors, including Uber Taxi and Tada, provide real-time taxi operation information, according to the antitrust watchdog. Kakao stepped up pressure by threatening to block drivers affiliated with the rival firms from receiving taxi calls from Kakao T, the flagship taxi-hailing service operated by Kakao Mobility, unless they accept the demand, it added.
This is an apparent violation of the law, as Kakao Mobility abused its market-leading position through the forcible contract, the FTC said. According to data from the watchdog, Kakao Mobility secured an overwhelmingly dominant market status with a share of 96 percent as of the end of 2022. “We have imposed a stern sanction against the de facto monopolistic platform which utilized its dominance unfairly,” FTC Chairman Han Ki-jeong told reporters during a briefing.
“The platform also attempted to improve its own service and map out sales strategies by demanding its competitors provide their confidential business information, which the FTC viewed as a breach of the nation’s fair competition rule.” Kakao Mobility has violated the Monopoly Regulation and Fair Trade Act between May 2021 and September 2024, during which the company is estimated to have generated sales of 1.4 trillion won, according to the FTC.
“The latest incident is a very grave violation of law, so we imposed 5 percent of the sales as a fine,” Han said. The fine imposed on Kakao Mobility is the fourth-largest to date for violations related to market dominance. “The sanction will serve as a wake-up call for platform companies to engage in fair competition with their rivals,” the FTC chief said.
The authority also referred the case to the prosecution for further investigation. In response, Kakao Mobility plans to file an administrative suit and prove its innocence in court. “We will sincerely explain our position that Kakao Mobility has not violated any laws,” an official from the company said.
“The partnership with the rivals came as part of efforts to minimize inconveniences felt by users, and we have never taken advantage of the information collected from the rival firms for the benefit of our own business." However, the company also expressed an apology for causing concerns to customers regarding the latest sanction. This is not the first time that the Kakao affiliate has been hit by a sanction from the watchdog.
Early last year, the company was fined 25.7 billion won for manipulating its algorithm to give more calls to its franchise taxis..
